[amp_mcq option1=”a-1, b-2, c-3, d-4″ option2=”a-2, b-3, c-1, d-4″ option3=”a-4, b-3. c-2, d-1″ option4=”a-2, b-3, c-4, d-1″ correct=”option1″]
The correct answer is: A. a-1, b-2, c-3, d-4
Direct wages are the wages paid to the workers who are directly involved in the production of goods or services. They are included in the prime cost of a product.
Packing is the process of enclosing goods in a container for protection during transportation. It is a part of the factory expenditure.
Depreciation is the decrease in the value of an asset over time due to wear and tear. It is a non-cash expense that is included in the cost of goods sold.
Legal expenses are the costs incurred by a company in connection with legal matters. They are included in the office expenses.
Here is a brief explanation of each option:
- Option A: This option is correct because it matches the items in List-I with the items in List-II in a logical way. Direct wages are included in the prime cost, packing is a part of the factory expenditure, depreciation is a non-cash expense that is included in the cost of goods sold, and legal expenses are included in the office expenses.
- Option B: This option is incorrect because it matches direct wages with the factory expenditure. Direct wages are included in the prime cost, not the factory expenditure.
- Option C: This option is incorrect because it matches packing with the sales cost. Packing is a part of the factory expenditure, not the sales cost.
- Option D: This option is incorrect because it matches depreciation with the office expenses. Depreciation is a non-cash expense that is included in the cost of goods sold, not the office expenses.